The operating environment for Venezuela's agribusiness sector has deteriorated significantlyover recent years due to the poor macroeconomic climate, a shortage of foreign currency for inputpurchases and general government mismanagement. Venezuela's economy will continue to be underextreme downward pressure in 2016 amid low international oil prices. The growing headwinds to theeconomy will weigh on agricultural production and consumption in the coming years, and we forecast mostcommodities to stagnate out to 2020. Producers of agricultural goods will struggle as rising productioncosts and controlled prices at the farm level reduce margins. As such, the divergence between Venezuelaand its neighbouring countries in terms of agricultural sector development will continue to grow in thecoming years.

Key Forecasts

- Coffee production growth to 2019/20: -8.2% to 459,000 60kg bags. Venezuela's coffee sector suffersfrom many structural weaknesses and is on the decline. Low profitability (due to government-mandatedprices), the lack of private and public investment and the rust disease will impede production fromgrowing.

- Poultry production growth to 2019/20: -7.7% to 563,000 tonnes. The sector is held back by a lack ofprofitability due to high input costs, inflation and government price controls, along with increasedcompetition from imports. The poultry industry will fare somewhat better than the beef sector, for whichthe outlook is especially bleak.

The 'Global and Chinese Grain Processing Machinery Industry, 2011-2021 Market Research Report' is a professional and in-depth study on the current state of the global Grain Processing Machinery industry ...